ACC 290 Week 3 Practice: Connect® Knowledge Check

Complete the Week 3 Knowledge Check in Connect®.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

1

On October 1, 2019, Helen Kennedy opened an advertising agency.

DATE	TRANSACTIONS
Oct. 1	Helen Kennedy invested $70,000 cash in the business.
2	Paid October office rent of $4,000; issued Check 1001.
5	Purchased desks and other office furniture for $18,000 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.
6	Issued Check 1002 for $4,100 to purchase art equipment.
7	Purchased supplies for $1,670; paid with Check 1003.
10	Issued Check 1004 for $800 for office cleaning service.
12	Performed services for $4,200 in cash and $1,800 on credit. (Use a compound entry.)
15	Returned damaged supplies for a cash refund of $300.
18	Purchased a computer for $3,000 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,750 down payment, with the balance payable in 30 days. (Use one compound entry.)
20	Issued Check 1006 for $9,500 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.
26	Performed services for $4,800 on credit.
27	Paid $375 for monthly telephone bill; issued Check 1007.
30	Received $4,200 in cash from credit customers.
30	Mailed Check 1008 to pay the monthly utility bill of $1,080.
30	Issued Checks 1009–1011 for $9,000 for salaries.

Required:

Journalize the above transactions.

Post the above transactions to the ledger accounts.

Analyze:

What is the balance of account 202 in the general ledger?

2

The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.

DATE		TRANSACTIONS
Sept.	1	Issued Check 1169 for $2,000 to pay the September rent.
	5	Performed services for $4,000 in cash.
	6	Performed services for $2,950 on credit.
	10	Paid $900 for monthly telephone bill; issued Check 1170.
	11	Paid for equipment repairs of $1,050 with Check 1171.
	12	Received $1,500 on account from credit clients.
	15	Issued Checks 1172–1177 for $5,200 for salaries.
	18	Issued Check 1178 for $2,700 to purchase supplies.
	19	Purchased new tennis rackets for $3,250 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days.
	20	Issued Check 1179 for $3,820 to purchase new nets. (Equip.)
	21	Received $500 on account from credit clients.
	21	Returned a damaged net and received a cash refund of $570.
	22	Performed services for $3,480 in cash.
	23	Performed services for $5,050 on credit.
	26	Issued Check 1180 for $620 to purchase supplies.
	28	Paid the monthly electric bill of $2,500 with Check 1181.
	30	Issued Checks 1182–1187 for $5,200 for salaries.
	30	Issued Check 1188 for $5,000 cash to Ellis Carter for personal expenses.

Required:

Record each of the above transactions in the general journal.

Analyze:

If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?

3

Selected activity of Mason Consulting Services follow.

DATE		TRANSACTIONS
2019
Sept.	1	Zack Mason invested $30,000 in cash to start the firm.
	4	Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
	16	Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment.
	20	Purchased supplies for $260; paid immediately with Check 1002.
	23	Returned damaged supplies for a cash refund of $85.
	30	Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823.
	30	Withdrew $1,500 in cash for personal expenses.
	30	Issued Check 1004 for $3,500 to pay the rent for October.
	30	Performed services for $7,325 in cash.
	30	Paid $220 for monthly telephone bill, Check 1005.

Post the above transactions into the appropriate Ledger accounts.

4

The following transactions took place at the Cook Employment Agency during November 2019.

DATE		TRANSACTIONS
Nov.	5	Performed services for Job Search, Inc., for $20,000; received $9,500 in cash and the client promised to pay the balance in 60 days.
	18	Purchased a graphing calculator for $450 and some supplies for $600 from Office Supply; issued Check 1008 for the total.
	23	Received Invoice 1602 for $2,500 from Automotive Technicians Repair for repairs to the firm’s automobile; issued Check 1009 for half the amount and arranged to pay the other half in 30 days.

Prepare journal entries for the above transactions.

5

Selected activity of the Ray Shipping Service follow.

TRANSACTIONS

Gave a cash refund of $750 to a customer because of a lost package. (The customer had previously paid in cash.)

Sent a check for $1,050 to the utility company to pay the monthly bill.

Provided services for $7,800 on credit.

Purchased new equipment for $4,600 and paid for it immediately by check.

Issued a check for $3,500 to pay a creditor on account.

Performed services for $15,250 in cash.

Collected $6,250 from credit customers.

The owner made an additional investment of $25,000 in cash.

Purchased supplies for $3,250 on credit.

Issued a check for $3,750 to pay the monthly rent.

Analyze the above transactions and record a journal entry for each transaction.

6

Selected activity of Mason Consulting Services follow.

DATE		TRANSACTIONS
2019
Sept.	1	Zack Mason invested $30,000 in cash to start the firm.
	4	Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.
	16	Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment.
	20	Purchased supplies for $260; paid immediately with Check 1002.
	23	Returned damaged supplies for a cash refund of $85.
	30	Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823.
	30	Withdrew $1,500 in cash for personal expenses.
	30	Issued Check 1004 for $3,500 to pay the rent for October.
	30	Performed services for $7,325 in cash.
	30	Paid $220 for monthly telephone bill, Check 1005.

Prepare journal entries for the transactions incurred during September of 2019.